Sector Update: Financial Stocks Rise Friday Afternoon

Financial stocks were advancing in Friday afternoon trading, with the NYSE Financial Index up 0.6% and the Financial Select Sector SPDR Fund (XLF) ahead 0.7%.

The Philadelphia Housing Index rose 0.7%, and the Real Estate Select Sector SPDR Fund (XLRE) added 0.3%.

Bitcoin (BTC-USD) spiked 5.2% to $104,732, and the yield for 10-year US Treasuries was little changed at 4.60%.

In economic news, housing starts in December rebounded by almost 16% to a 1.499 million annual rate, beating expectations in a Bloomberg survey for a 1.33 million rate after a decrease to a 1.294 million pace in November.

US industrial production rose by 0.9% in December, above expectations for a 0.3% increase in a Bloomberg-compiled survey, and following an upwardly revised 0.2% increase in November.

The International Monetary Fund raised its global and US economic growth expectations for this year, but said the balance of risks to the overall outlook is tilted to the downside in the medium term. The agency now projects 2025 global real GDP growth at 3.3%, up from a 3.2% gain estimated in October.

In corporate news, Truist Financial's (TFC) Q4 results increased year over year and topped market expectations, buoyed by net interest income and noninterest income gains. Its shares popped 4.4%.

Wells Fargo's (WFC) clearing unit will pay a $28 million civil penalty, while its financial advisory subsidiary will pay $7 million, the US Securities and Exchange Commission said Friday. The penalties settle charges that the firms failed to adopt adequate policies and procedures to prevent violations of the Advisers Act in their cash sweep programs, the agency said. Bank of America's (BAC) Merrill Lynch unit agreed to a $25 million fine to resolve similar charges, the SEC said. Wells Fargo shares rose 0.1%, and Bank of America was down 0.8%.

LPL Financial (LPLA) has agreed to pay an $18 million civil penalty to the US Securities and Exchange Commission to settle charges of anti-money laundering violations, the agency said. The company's shares rose 0.5%.